Thursday's Markets Update (September 5, 2024)

06 Sep 2024 by rate3

On Thursday, stocks traded mixed as investors anticipated Friday's employment report. Private payrolls data showed weaker-than-expected job growth, but falling unemployment claims provided some optimism. Overall, conflicting economic signals raised concerns about a potential recession and the Fed's monetary policy. Internationally, the Eurozone construction sector continued to contract. BTC and ETH dropped marginally to 56K and 2.4K, reinforcing bearish sentiments.

Details

Job cuts surged in August, reaching a five-month high. Tech companies led the layoffs, reflecting growing economic uncertainty. This aligns with other indicators suggesting a softening labor market, supporting the case for lower interest rates. 1Y trend: "Up" (CH)
Initial unemployment claims decreased slightly but remained elevated compared to earlier this year. The decline suggests a marginally improving labor market, but it remains historically tight. Outstanding claims also fell, and the four-week moving average decreased.
1Y trend: "Up" (DOL)
The ISM Services PMI rose slightly in August, surpassing expectations. While new orders and employment showed growth, production slowed, and the backlog of orders decreased. Prices continued to rise at a faster pace, driven by increased costs in various sectors. 1Y trend: "Down" (ISM)

Crypto

Private Telegram groups are not private anymore. The corresponding statement was removed today from TG FAQ. Telegram generates substantial revenue from cryptocurrency-related activities. Despite an overall loss, the company reported $342.5 million in revenue in 2023, with over 40% stemming from its cryptocurrency wallet and collectible sales. Telegram’s operations are based in the British Virgin Islands. (source)

World Markets

The Eurozone construction sector continued to contract in August, with new orders falling sharply. This led to a decline in activity, employment, and purchasing. All three segments of the construction sector experienced contractions, with housing and commercial construction seeing the steepest declines. While input prices rose slightly, inflation remained below long-term averages. Despite this, construction companies remain pessimistic about the future. 1Y trend: "Down" (PMI)